Upward reaction in Europe but closing in the low of the day

The recovery attempt of the European indices after the three-day global sell-off finally proved to be weak, as they returned to positive signs but in the last hour of the trading their profits were drastically reduced.

In particular, the pan-European Stoxx 600 completed its trading with a rise of 0.68% to 420.29 points after the two-month low recorded yesterday, but far from the 425.42 points it had reached intra-conference.

On the European charts, the German DAX rose 1.15% and closed at 13,534 points with a high of the day but at 13,720, the French strengthened by 0.51% closing at 6,116 points (high at 6,206), as well as the British FTSE 100 which gained 0.37% at 7,243 points (with a high of 7,311).

Similarly, in the region, the Italian FTSE MIB closed with a rise of 1.04% to 23,069 points (high at 23,378), while the Spanish IBEX 35 ended unchanged at 8,139 points, although intra-conference it had reached 8,259.

Concerns about persistently high inflation, rising interest rates by central banks and the possibility of a recession returning to the economy continue to be at the forefront, setting the pace for markets.

As Kleinwort Hambros chief investment officer Fahad Kamal told CNBC, “a meeting alone does not say much. Obviously, there is a lot of fear in the markets, there is a lot of volatility.”

“I do not think we are still at full capitulation levels, at least in terms of what follows. I do not think we are in a particularly over-sold area at the moment,” he added.

According to him, the markets are in “overdue correction”, given the rally that had preceded the past 18 months.

In the movements of individuals sharesSwedish Match stole the show with a 25% rally, after the nicotine product company confirmed that it has accepted an acquisition approach from the industry giant Philip Morris.

Munich Re announced a small increase in profits in the quarter and recorded an increase of 1.54%.

At the macro of the day, industrial production was better than expected in March, recording almost unchanged performance compared to the previous month, after growing by 4% in February. Analysts had expected a 1.9% drop in March. On an annualized basis, industrial production increased by 3%, following the annual increase of 3.4% a month ago.

The Economic expectations in Germany improved slightly in May, as experts are less pessimistic about the prospects of the German economy, stressed the ZEW economic research institute. The economic expectations index rose to -34.3 points in May from -41 points in April, higher than estimates for 44.5 points.